Corn Corn futures are called 7 to 10 cents lower. Overnight trade was 7 1/2 to 10 cents lower. Favorable rainfall in the western Corn Belt and much of Iowa will relieve some crop stress. However, rain amounts will be limited in the eastern Corn Belt. The market is expected to move opposite of crude oil this morning, but overnight gains in oil and weakness in the dollar overnight should help limit losses this morning.
Soybeans Soybean futures are called 15 cents lower on the open. Overnight trade was 13 to 16 cents lower. The market will be pressured this morning by rainfall in the northwestern crop belt including much of Iowa. While dry areas remain in the eastern Midwest, crop stress has been relieved in many areas. Concern that exports may fall short of USDA’s projection is bearish and shipments will be watched in the weekly export sales report. As with corn, strength in crude oil overnight and weakness in the dollar will limit further losses.
Wheat Wheat futures are called 5 to 7 cents lower. Overnight CBOT was 4 1/2 to 8 3/4 cents lower and the KCBT was 6 1/2 cents lower. Losses in wheat are expected to be muted compared to the other grains following the sharp losses on Wednesday. The large world wheat production estimates and forecasts for favorable rain in Australia will be bearish for the market. However, weakness in the dollar overnight should help to limit further losses.
Cattle Cattle futures are called steady to lower. Further spillover weakness from lean hog futures and the $1.06 drop in choice beef cutouts yesterday will weigh on the market. Losses should be limited by the fact that market ready cattle numbers are tightening and that beef demand should soon begin to improve seasonally.
Hogs Lean hog futures are called lower again this morning. After the $3 limit losses on Wednesday, we look for further losses on the open. Cutouts and cash markets are in free fall. Pork cutouts were down $2.05 yesterday after declining almost $4 the previous day. Cash prices fell about $3 yesterday and have been trending lower this week. There is also concern about pork exports as Russia plans to cut import quotas for pork.
